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Retention rate, dept-equity, and return on assets: a theoretical risk reconciliation for small firm growth
Journal of Economics and Business - SPOUDAI
View Archive Info| Field | Value | |
| Title |
Retention rate, dept-equity, and return on assets: a theoretical risk reconciliation for small firm growth
Retention rate, dept-equity, and return on assets: a theoretical risk reconciliation for small firm growth |
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| Creator |
Bruton, Garry D.
Βοζίκης, Γεώργιος Σ. |
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| Subject |
Οικονομική ανάπτυξη; Χρηματοοικονομική διαχείρηση
Economic growth; Financial management |
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| Description |
There has been relatively little research into the financing and growth rates of small firms even though they are the main vehicle for a nation's economic growth. This paper examines the relationship among retention rate, debt-equity ratio and return on assets for the small firm. The study demonstrates, through a simplified model, that the lack of an active equity market can be responsible for limitations in the size of the small firm. The model further demonstrates that if only internal financing is utilized a severe constraint is placed on the actual rate of growth of the firm. A combination of internal equity financing and external debt financing produces a higher (though still constrained) growth rate. |
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| Publisher |
University of Piraeus
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| Date |
1993-07-01
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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| Format |
application/pdf
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| Identifier |
http://spoudai.unipi.gr/index.php/spoudai/article/view/1017
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| Source |
SPOUDAI - Journal of Economics and Business; Vol 43, No 3-4 (1993); 179-192
2241-424X 1105-8919 |
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| Language |
eng
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| Relation |
http://spoudai.unipi.gr/index.php/spoudai/article/view/1017/1096
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| Rights |
Copyright (c) 1993 SPOUDAI - Journal of Economics and Business
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